An accessory dwelling unit, often called a backyard cottage, carriage house, or secondary living unit, is a self-contained residence located on the same property as a primary home. In order to be considered an ADU, the dwelling must contain a bedroom or living space, its own kitchen (with large appliances), and a bathroom (with shower, toilet, and sink). It also must have its own separate and lockable entrance door.
ADUs can be detached, attached, or even built above an existing structure like a garage. The right approach depends on city zoning requirements, lot constraints, and how you plan to use the space.